ESG reporting is becoming a commercial reality for businesses of all sizes, but getting it right can be harder than it looks. Many companies invest time and resources into their ESG reporting, only to undermine their own credibility with avoidable mistakes.
Here are the most common ones, and what to do instead.
Treating ESG reporting as a tick-box exercise
The biggest mistake is also the most common. ESG reporting done purely for compliance, with no real strategy behind it, is easy to spot. Stakeholders, customers and investors can tell the difference between a business that has embedded sustainability into its operations, and throughout its team, as sustainability efforts shouldn’t fall on one person, vs one that has assembled a report to meet a deadline.
Reporting should reflect what your business is actually doing. If the strategy isn’t there yet, you need to take the time to build it first.
Skipping the materiality assessment
Not every ESG issue is relevant to every business; for example, a manufacturing company faces different material risks than a professional services firm. Without a materiality or double materiality assessment, businesses often end up reporting on everything and nothing at the same time.
Focus on the ESG issues that matter most to your business, your stakeholders, and your supply chain, where your reporting will carry the most weight.
Carbon tunnel vision
Carbon is important, but it’s one part of a much bigger picture. Businesses that report exclusively on emissions while ignoring governance, social impact, and supply chain ethics present an incomplete picture.
ESG stands for Environmental, Social and Governance, and stakeholders are increasingly looking across all three. A credible report addresses all of them proportionately.
Vague commitments without measurable targets
“We are committed to becoming more sustainable” is not a target. It’s a statement of intent and a plan of action. Without clear, measurable goals and a timeline to achieve them, ESG commitments are difficult to verify and easy to dismiss.
Set specific targets, and report against them honestly and with transparency, including where progress has been slower than expected; progress still holds weight.
Inconsistent or incomplete data
ESG reports built on patchy data are a liability, not an asset. Missing metrics, unexplained gaps and inconsistent methodology all raise questions about reliability, and stakeholders notice. Audit-ready data is becoming the norm, so businesses should start thinking about how they’ll collect high-grade data.
But start with the data you have, and be transparent about gaps and explain how you’re closing them. Progress over time is more credible than a polished report built on shaky foundations.
Choosing the wrong reporting route
CDP, GRI, ESRS, UK SRS, EcoVadis, SBTi. The number of reporting standards can be overwhelming and can feel very buzzword-filled. Businesses sometimes choose a disclosure route because a competitor uses it, or because it looks comprehensive, without checking whether it’s right for their size, sector or stakeholder expectations.
The right path depends on who you’re reporting to and why. Get that right before you start building your report around it.
Reporting once and going quiet
ESG reporting is not a one-off project; it’s an ongoing process. Businesses that publish a report and then go silent for two years send a signal that sustainability is not a genuine priority.
Regular updates, even short ones, demonstrate that ESG is embedded in the business, not just documented in it.
Greenwashing, even unintentionally
Overstating progress, using ambiguous language or making claims that aren’t backed by data is greenwashing. It doesn’t have to be deliberate to be damaging. With growing scrutiny from regulators, customers and the media, the reputational risk is significant.
If you’re not sure a claim stands up, don’t make it. Honest, measured reporting builds more trust than bold statements that can’t be verified.
Getting ESG reporting right
The businesses that get ESG reporting right aren’t necessarily the ones doing the most. They’re the ones being clear, consistent and credible about what they’re doing and why.
If your business is ready to move beyond the basics and build ESG reporting that holds up to the questions your investors and customers are asking, our team is here every step of the way.